Selling pressure in Straits Times Index is getting limited. Reversal is in the making.

Selling pressure in Straits Times Index is getting limited. Reversal is in the making.

Last week, STI made a remarkable rebound for the whole week despite a weak start on Monday. Many speculated that the “window dressing” effect contributed to the rebound. On Monday, STI failed to hold its support at 3110 level and market participants were still fearful about US’s plans to taper their stimulus package. This caused STI to break its important support of 3080 level but was lacking of strong trading volume. On Tuesday, STI tried to trade much lower but bargain hunters made use of the opportunity to buy into weakness and this helped STI to rebound back above its 3080 support level again. This turn out to be the turning point of STI as it started to break it next support turn resistance level of 3110 level. Within the next few days, STI managed to …